FTSE 100 closes above 7,000, but US stocks tumble amid inflation data

US Consumer Price Index rise in April this year stood at 4.2%, the highest level since September 2008

US stocks suffered the biggest slump in at least 11 weeks on Wednesday after inflation data (AFP via Getty Images)

London’s FTSE 100 edged higher on Wednesday, buoyed by positive earnings updates from companies like Diageo and stronger-than expected monthly GDP data bolstering hopes for economic recovery.

The blue-chip FTSE 100 closed 56 points higher, or 0.82 per cent up, at 7,004, with oil giants among the top winners as crude prices firmed. But the midcap FTSE 250 fared less well, and fell 55 points, or 0.27 per cent, at 22,107.

Meanwhile, the US stocks plunged heavily amid the release of inflation numbers. The US Consumer Price Index rise in April this year stood at 4.2 per cent, compared to a year earlier, the highest level since September 2008.

The Dow Jones slumped over 371 points, or 1.08 per cent to 33,898. The S&P 500 lost over 58 points at 4,094 and the Nasdaq Composite exchange fell 295 points at 13,094.

A sell-off in US government bonds also accelerated, sending the yield on the benchmark 10-year bond 0.06 percentage points higher to 1.68 per cent.

On Thursday morning, Asian stocks dropped on weak global cues and rising commodity prices, as the regional benchmark erased its gains for the year. Japan’s Nikkei 225 fell over 1.5 per cent by noon while Hang Seng shed around 0.9 per cent. Shanghai Composite was also 0.7 per cent down.

The Indian markets remained closed on account of Eid al-Fitr.